Are you ready for the final days of frustration, ready for this bull/bear battle to resolve itself?

With the market getting squeezed between an intermediate upward trend line and upper resistance, I think it happens very soon.  When a bull and bear are backed into a corner with nothing between them but a 16oz. tenderloin, something has got to give right?. (OK my analogies need some work, but it may be better than the dead cat bounce)

Here’s another bold prediction…  I have no idea where this market is headed.  While I’m still moderately bullish considering major support levels are intact and we’re making higher highs and higher lows, the market has failed to follow through on rally attempts twice now in the last couple of weeks and selling volume is beginning to overshadow buy volume.

Lets take a look at the squeeze on the charts.

You can see in the Nasdaq we’re right on that upward trend line which continues to squeeze the Nasdaq up to resistance.  We’re running out of room creating the likelihood of a big move in either direction very soon.  My feeling is we sell off a bit tomorrow morning but continue to hold up at that trend line for at least a few more days.  But time is running out….
(apologies for the grainy charts, the screenshot was taken a bit too wide)

The "squeeze" is also evident in the S&P as we sit right on that upward trend line as well.  Strong support at 1275 (notice the 50 day moving average converges there as well, adding strength to the support).

While there isn’t a well defined area of resistance around the highs of the Dow like there is in the S&P and Nasdaq, there is a clearly defined upward trend line.  It was discouraging to see that the Dow wasn’t able to hold up at 11,000 today, but it still has some support at the 50 day moving average as well as that upward trend line.